Under what circumstances is the Buildingstars Initial Franchise Fee refundable?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
urance that a Corporate Program franchise will be offered to you.
The Initial Franchise Fee for all of the Programs are fully earned when paid and are not refundable under any circumstances.
ITEM 6. OTHER FEES*
| NAME OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Royalty Fee | 10% of Gross Sales | Deducted on the 15 th of each month | See below for a more detailed explanation ( Note 1 ) |
| Management Fee: Technician Program On-Site Manager Program Corporate Program | 20% of Gross Sales 10% of Gross Sales 0% of Gross Sales | Deducted on the 15 th of each month | See below for a more detailed explanation (Note 1) |
| Account Sales Fees: Technician Program On-Site Manager Program Corporate Program | None 200% of Monthly Contract Revenue 400% of Monthly Contract Revenue | Payment under a Promissory Note | See below for a more detailed explanation (Note 2) |
| Non-Performance Fee | $25 per hour per person needed to resolve complaint plus out of pocket expenses incurred | Immediately | If we receive a complaint from a customer and it is not remedied by you within 2 |
Source: Item 5 — INITIAL FEES (FDD pages 11–14)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the initial franchise fees are generally not refundable. Specifically, the FDD states that the initial franchise fees for all programs are fully earned when paid and are not refundable under any circumstances.
However, the initial franchise fee can be credited under certain circumstances. If a franchisee in good standing under a Technician Program Franchise Agreement decides to purchase an On-Site Manager Program franchise, the initial franchise fee paid under the Technician Program Franchise Agreement will be credited against the Initial Franchise Fee for the On-Site Manager Program. Similarly, if an On-Site Manager Program franchisee in good standing purchases a Corporate Program franchise, the initial franchise fee paid under the On-Site Manager Program Franchise Agreement will be credited against the Initial Franchise Fee and amounts paid for Account Sales Fees for the Corporate Program.
This means that while Buildingstars does not offer refunds of the initial franchise fee, franchisees who upgrade to another program may receive credit for the initial fee they already paid. This is a benefit for existing franchisees looking to expand their business within the Buildingstars franchise system. However, there is no guarantee that a franchisee in the Technician Program will be offered an On-Site Manager Program franchise, or that a franchisee in the On-Site Manager Program will be offered a Corporate Program franchise.